Publicis Groupe: 2013 First Half-year results
(Thomson Reuters ONE) -
PUBLICIS GROUPE 2013 H1 Results
Net income: +15,0%
EPS diluted +11.8%
Free Cash Flow: +27.2%
Strong organic growth acceleration in the Q2: +5,0%
2(nd) Quarter 2013
(EUR million)
* Revenue 1,788 +9.6%
* Organic Growth +5.0%
1(st )Half-Year 2013
(EUR million)
* Revenue 3,351 +8.7%
* Organic Growth +3.2%
* Operating margin 462 +11.6%
* Operating margin rate 13.8%
(2012: 13.4%*)
* Net income, attributable to the Groupe 314 +15.0%
* Diluted EPS (?) 1.42 +11.8%
* * Free Cash Flow** 346 +27.2%
*
*
*
* Restated for compliance with IAS 19 (revised) applicable as of January
1, 2013
** Excl. changes in Working Capital Requirements (WCR)
Maurice Lévy, Chairman and CEO of Publicis Groupe:
" The strong organic growth acceleration at 5% in the second quarter allows the
Groupe to significantly improve its performance. This should be put into the
perspective of an unpropitious economic situation, fierce competition and an
uncertain business environment. The emerging countries are slowing, Europe is
struggling to get back on the road to growth, while the USA is consolidating its
upturn.
The Groupe's strategy, its agile and mobile organization, and the energy of our
people have taken us safely through these difficult times and enabled us to
generate good first-half growth (+3.2%) and improved margins (13.8% in H1),
despite weak profitability in France and more generally in Europe.
Our investments in the digital sector are proving very promising. For instance,
we achieved 13,4% growth in the second quarter and 11,1% in the first half year
in a sector that now generates close to 37% of our total revenue. Our
investments in the emerging markets are also producing strong growth, even
though these markets have slowed somewhat of late.
I would like to express my thanks to our clients for their trust in us, and to
our people for their energy, creativity and professionalism.
Our balance sheet remains robust and our financial ratios have even improved, so
we can look the future calmly in the eye.
Though we know how to operate cautiously, we have started the second half of the
year in a confident mood, convinced we can achieve all the objectives we have
set ourselves (growth, development, profitability...)."
Publicis Groupe's Supervisory Board met on July 17, 2013, under the chairmanship
of Elisabeth Badinter, to examine the first half-year accounts at June 30, 2013
presented by Maurice Lévy, Chairman of the Management Board.
I - Key figures
EUR million, except percentages H1 2013 H1 2012* 2013 /2012
and per-share data (EUR)
--------------------------------------------------------------------------------
Data from the Income Statement
Revenue 3,351 3,084 8.7%
Operating margin before depreciation
and amortization 523 467 12.0%
% of revenue 15.6% 15.1%
Operating margin 462 414 11.6%
% of revenue 13.8% 13.4%
Operating income 451 391 15.3%
Net income attributable to the Groupe 314 273 15.0%
--------------------------------------------------------------------------------
Earnings per share( )((1)) 1.47 1.41 4.3%
Diluted Earnings per share ((2)) 1.42 1.27 11.8%
--------------------------------------------------------------------------------
Free cash flow before changes in
working capital requirements 346 272 27.2%
--------------------------------------------------------------------------------
Data from the Balance Sheet June 30, 2013 December 31, 2012*
--------------------------------------------------------------------------------
Total assets 16,653 16,605
Groupe share of consolidated
shareholders' equity 4,552 4,614
--------------------------------------------------------------------------------
* For compliance with IAS 19 (revised) applicable as of January 1, 2013,
comparative information for 2012 have been restated (note 1 of consolidated
financial statements). The impact on the Operating margin is -1 million euro,
and - 2 million euro on Net income.
1. Earnings Per Share calculations based on an average of 213.5 million shares
in the first half of 2013, and 193 million in the first half of 2012
((2) )Diluted Earnings Per Share based on an average of 221.7 million
shares in the first half of 2013, and 226.6 million in the first half of 2012.
These calculations include stock options, free shares, equity warrant s and
convertible bonds that dilute EPS. Stock options and equity warrants are deemed
to have a dilutive effect when their strike price is below the average share
price for the period.
II - Business in H1 2013
The signs of global economic recovery remain uncertain, between emerging markets
like China slowing up, and Europe where expected growth may not materialize in
2013. In the light of these trends and despite the return of growth in the USA,
the IMF has lowered its forecasts for the fifth time since the start of the
year. In this difficult climate, Publicis Groupe performed particularly well,
especially in Q2, and achieved very good results in the first half of 2013.
* Q2 2013 Revenue
Publicis Groupe reported consolidated revenue of 1,788 million euro for Q2
2013, i.e. a 9.6% increase (the impact of exchange rates was a negative 34
million euro).
Revenue was shored up by continued growth in the USA, good performance in the
digital sector and stabilization in Europe. The second quarter saw excellent
organic growth of 5%.
- Q2 2013 revenue by region
(EUR million) Revenue As Published Organic growth
-----------------------------------------------------------------------
Q2 2013 Q2 2012 Q2 2013 / Q2 2012 Q2 2013
-----------------------------------------------------------------------
Europe* 528 468 +12.8% -1.1%
North America 854 782 +9.2% +7.7%
BRIC + MISSAT** 233 209 +11.5% +5.6%
Rest of the world 173 173 - +9.0%
-----------------------------------------------------------------------
Total 1,788 1,632 +9.6% +5.0%
* Europe excluding Russia and Turkey
** MISSAT: Mexico, Indonesia, Singapore, South Africa and Turkey
* H1 2013 Revenue
Consolidated revenue for the first half of 2013 was 3,351 million euro, i.e. an
8.7% increase on the 3,084 million euro for the corresponding period in 2012.
The impact of exchange rates was a negative 53 million euro.
Organic growth was 3.2% in H1 2013.
This improvement on H1 2012 (2.8%) came from a variety of factors, notably the
following:
* the very good performance recorded in North America combined with digital
activities a very important part in that region,
* the continued growth in China despite the slowing economy,
* the relative improvement in Europe in the second quarter,
* the near stabilization of the healthcare sector,
* favourable 2012 comparatives.
Digital accounted for 36.9% of total revenue, compared with 33.2% during the
previous year. Digital activities achieved organic growth of 11.1%, while so-
called analog activities fell 0.7% worldwide over the period despite growth in
the developing regions (BRIC+MISSAT and the rest of the world).
The high-growth economies generated 24.0% of total revenue, after 24.4% in 2012.
Together, the BRIC+MISSAT countries achieved organic growth of 5.5% in H1 2013.
In 2013, the breakdown of consolidated revenue was as follows:
* Digital: 37% (33% in 2012)
* Advertising: 29% (30% in 2012)
* SAMS: 17% (19% in 2012)
* Media: 17% (18% in 2012).
- H1 2013 revenue by region
(EUR million) Revenue As published Organic growth
----------------------------------------------------------------------------
H1 2013 H1 2012 H1 2013 / H1 2012 H1 2013
----------------------------------------------------------------------------
Europe* 970 880 +10.2% -3.6%
North America 1,630 1,506 +8.2% +6.1%
BRIC + MISSAT** 434 385 +12.7% +5.5%
Rest of the world 317 313 +1.3% +6.3%
----------------------------------------------------------------------------
Total 3,351 3,084 +8.7% +3.2%
* Europe excluding Russia and Turkey
** MISSAT: Mexico, Indonesia, Singapore, South Africa and Turkey
In H1 2013, all regions posted growth except Europe, where negative growth
continued to prevail despite a marked improvement in northern Europe in the
second quarter.
* Europe, France saw its growth improve slightly in Q2 but remained in
negative territory for the half year (-4.7%), as did the UK (-3.2%). Germany
recorded growth of 3.5%, but the southern countries were still distinctly in
decline (Spain -8.4%, Italy -14.2%).
* North America, with 6.1% growth, continued to show strong resilience despite
the discontinuation of the GM accounts (Media and Search) that still had a
negative impact until the middle of the second quarter. The high proportion
of digital activities in the USA is a growth driver by comparison with the
more traditional sectors.
* The BRIC+MISSAT countries achieved growth of +5.5%, with notable scores in
the Greater China region (+11.5%) and Turkey (+7.0%). The situation in
Brazil (+3.3%), Singapore (+4.2%) and India (+2.8%) was more contrasted.
* The rest of the world, which includes Australia and Japan, grew by 6.3%.
III - Analysis of key figures
Operating margin and Operating income
The Operating margin before depreciation and amortization was 523 million euro
in H1 2013, up 12% (from 467 million for the corresponding period in 2012).
Staff costs totaled 2,168 million euro in H1 2013, up 9.6% from 1,979 million
for the corresponding period in 2012. Fixed staff costs were controlled at
56.8% of total revenue (after 57.3% in H1 2012), while freelancers' costs
remained high at 152 million for the period compared with 129 million in 2012.
Restructuring costs were stable at 31 million euro, i.e. exactly the same amount
as in H1 2012. On-going, rigorous management involves greater selectiveness,
whether in investing in talent or in growth segments, but also cost containment
or reduction in businesses and regions where growth is slow.
A number of current investments (ERP, production platforms, regionalization of
the shares services centers, technological developments) will reduce costs in
the medium term through greater operational efficiency.
Other operating costs (excluding depreciation) amounted to 660 million euro,
i.e. a moderate increase (3.4%) due to various measures, particularly in real
estate. They represented 19.7% of total revenue (after 20.7% in 2012).
Commercial expenses remained high at 132 million, i.e. 3.9% of revenue.
Administrative costs continued to decrease thanks to the programs aimed at
optimizing various operating expenses by regionalizing shared services centers.
The impact of acquisition-related costs was 5.5 million euro.
Depreciation and amortization (excluding intangible arising from acquisitions)
totaled 61 million euro in H1 2013, compared with 53 million for the
corresponding period in 2012.
The Operating margin rose 11.6% to 462 million, after 414 million in H1 2012.
The percentage operating margin stood at 13.8% at June 30, 2013, up 40 basis
points from June 30, 2012 (13.4%). This is a marked improvement given the
increase in commercial expenses and the higher level of investment in talent and
technology.
Amortization of intangibles arising from acquisitions totaled 23 million euro in
H1 2013, after 22 million in H1 2012. An impairment charge of 1 million euro was
booked for the period (compared with 5 million in H1 2012), and other non-
recurring income reached 13 million euro compared with 4 million euro in 2012.
Operating income stood at 451 million euro at June 30, 2013, up 15.3% from
391 million euro at June 30, 2012.
Financial income / expense was a net expense of 5 million euro in H1 2013, down
from a net expense of 11 million euro in H1 2012. Mention should be made of the
fact that the Q1 2012 financial statements included extraordinary income of
17 million euro (no impact on cash) subsequent to the redemption of the 2012
Eurobonds at maturity. Similarly, expenses were reduced by 19 million euro in H1
2013 as a result of the conversion of all 2014 Oceane convertible bonds in July
2012.
Income tax for the period was 125 million euro, i.e. a forecast effective tax
rate of 28.8%, compared with 106 million in H1 2012. Effective Tax rate remains
identical to the 2012 rate.
The share of profit of Associates was 2 million euro for the period, after 7
million in 2012. Minority interests totaled 9 million euro in H1 2013, after 8
million in H1 2012.
Net income attributable to the Groupe was 314 million euro in H1 2013, up from
273 million euro for the corresponding period in 2012.
* Free cash flow
The Groupe's free cash flow, before changes in working capital requirements
(WCR), was 346 million euro, i.e. up 27.2% on 2012 (272 million euro).
* Net debt
Net financial debt stood at 637 million euro at June 30, 2013 compared with 902
million at June 30, 2012.
The average net debt for the period was 555 million euro, down from 856 million
at June 30, 2012.
At June 30, 2013, the Groupe had available liquidity of 2,520 million euro.
* Shareholders' equity
At June 30, 2013, consolidated shareholders' equity, including minorities,
totaled 4,600 million euro (3,602 million euro at June 30, 2012, restated for
compliance with the revised version of IAS 19).
The Debt / Equity ratio was 0.14 at June 30, 2013, after 0.25 at June 30, 2012.
IV - Distinctions / Creativity
At the 2013 Cannes Lions International Creativity Festival, Publicis Groupe
received 156 Lions including 1 Grand Prix, 26 Gold, 52 Silver and 77 Bronze
awards, and was ranked 3rd communications group. Leo Burnett Worldwide was the
group's top ranking network with 53 Lions as well as being shortlisted 215
times, followed by Publicis Worldwide (42 Lions and shortlisted 153 times).
Saatchi & Saatchi took 37 Lions including 9 Gold, and BBH had a remarkable year
with 21 Lions.
In addition to its success at the Cannes Festival, BBH was named Agency of the
Year at the British Arrows Awards.
Leo Burnett was awarded nearly a hundred Golds at various festivals such as the
Addy Awards, Ad Fest, Andy Awards, Clio Awards, or FAB Awards.
Among other awards, Saatchi & Saatchi was named Creative Agency of the Year in
China (China Advertising Magazine and R3), and took 5 Golds at the Clio Awards
and another 12 at the Effie Awards.
Marcel performed outstandingly this year with 4 Golds at the Clio Awards where
it was also named Agency of the Year. Digitas received 2 Golds at the Effie
Awards and LBi took the top spot in the Best of Use of Digital category at the
CIPR Awards. Furthermore, Razorfish took the gold award in the e-commerce
category at the 92nd Art Directors Club (ADC) Awards.
Starcom MediaVest Group took Best Agency for Innovation in the Media at the
Internationalist Awards in the USA, in addition to winning 10 Golds at the Effie
Awards.
For the second year in succession, MSLGROUP Asia was named Top PR Network of the
Year at the Campaign Asia-Pacific PR Awards.
Elsewhere, a number of the Groupe's agencies received Agency of the Year awards:
* Badillo Nazca Saatchi & Saatchi, named Agency of the Year for the fifth
consecutive year at the 2012 Cuspide Awards
* Saatchi & Saatchi Poland took the KTR Agency of the Year award
* Saatchi & Saatchi Argentina won FIAP's Agency of the Year award
* Saatchi & Saatchi awarded the title of Creative Agency of the Year in China
* Starcom MediaVest Group named Agency of the Year at the Dubai Lynx et
Ireland Media Awards
* Arc Worldwide/Leo Burnett crowned Agency of the Year at the Addy Awards
* Leo Burnett Asia-Pacific took Best Network of the Year at the AdFest Awards
* BBH was voted the Agency of the Year award at the British Arrows
* Marcel won the Agency of the Year title at the Clio Awards
Over and beyond the above-mentioned examples, hundreds of prizes are regularly
awarded to Publicis Groupe agencies throughout the world and in numerous
sectors. These distinctions bear witness to the quality of staff, but also to
their commitment and talent which are essential to the Groupe's future
development.
V - Groupe's CSR policy
The Groupe's undertakings, as indeed those of each network and agency, are
structured around four themes (social issues, society, governance / economics,
and the environment):
- Social issues: training and skills
- Governance: ethics and profitability
- Environment: consuming better and less
- Society: Publicis and its role in society
In 2013, the Groupe published its fourth Corporate Social Responsibility (CSR)
report, thus consolidating the scope of its undertakings while significantly
increasing the number of indicators in force. This report is available at
http://www.publicisgroupe.com.
VI - External growth
* Acquisitions
During the first half year, Publicis Groupe made a number of acquisitions, in
keeping with its strategy.
LBi: On January 29, 2013, Publicis Groupe held 98.13% of LBi's outstanding
shares.
After the delisting of March 7, 2013, Publicis Groupe initiated a squeeze-out
procedure in order to buy up all remaining shares not held by the Groupe.
Convonix: On March 11, Publicis Groupe announced the acquisition of Convonix,
one of India's leading digital marketing consultancies based in Mumbai. The
company will align with Starcom MediaVest Group (SMG) to provide search engine
optimization, paid search engine marketing (SEM), social media marketing and
online reputation management to an extensive roster of clients.
Neev: On April 18, the Groupe entered into an agreement to acquire Neev, one of
India's leading providers of technology services. Based in Bangalore, Neev
leverages cloud and mobile technologies and promotes innovation that drives
business success. It has a track record for cutting edge product innovation and
market firsts, in areas of video streaming, eCommerce, and data visualization.
VII - Other transactions
Further to the proposal put forward by Dentsu, Publicis Groupe bought back close
to 3.9 million of its own shares, in the form of a block transaction before the
market opened for trading on February 15, 2013, for a total of 181 million euro,
i.e. 46.82 euro per share.
The 3,875,139 shares thus purchased are being held as Treasury stock and will
serve to cover presence- and performance-based share attributions and stock
option plans.
This share buyback was entirely funded by available liquidity within the Groupe.
Furthermore, in April 2013, the key executives of Publicis Groupe widely
subscribed to the co-investment offer put before them. This undertaking is part
of the co-investment program approved by the Supervisory Board, and an
independent entity (LionLead SCA) was set up to manage these investments.
With 190 subscribers, the program has already proved a huge success with 96.4%
of eligible executives taking part. As applications totaled 135 million euro,
the offer was oversubscribed three times (offer capped at 45 million euro).
Between April 22 and 29, LionLead SCA purchased 846,379 Publicis Groupe shares
for a total of 45 million euro, i.e. an average share price of 52,81 euro,
representing 0.4% of the Groupe's share capital.
VIII - New Business
Accounts awarded net of losses totaled 2.8 billion dollars in the first half
year (list attached).
IX - Recent events
* Acquisitions
- On July 2, the Groupe announced the acquisition of 100% of Bosz Digital SA in
Costa Rica and, subject to the approval of local authorities, Bosz Digital
Colombia SAS, an important, high-quality media and digital production platform
in Central America. This acquisition considerably strengthens Publicis Groupe
Production Platforms' integrated and global offering.
- On July 9, Publicis Groupe acquired Net(at)lk, one of the most prominent pure
players in China's social media service market. Net(at)lk is comprised of four
business divisions:
* Net(at)lk and Simone: social media services
* Lenx: social content
* Buzzreader: social intelligence (monitoring, research and analytics,
covering most social platforms in China, such as Weibo, Renren, Youku,
Taobao, and WeChat)
The agency offers research, insight, strategic planning, branded content
creation, engagement, and analytics in the realm of social media.
On July 15, Publicis Groupe announced a 15 million dollar strategic investment
in Jana, an international company specialized in mobile technology. This
Boston-headquartered company has developed the biggest international mobile-
loyalty platform in the emerging markets including Brazil, India, Indonesia and
Nigeria. This is the Groupe's first direct investment in a mobile technology
start-up.
Jana has agreements with 237 operators in the emerging markets, and access to
3.48 billion subscribers.
X - Outlook
In a global economy that sees GDP growth forecasts revised downwards regularly,
ZenithOptimedia reduced its 2013 advertising market estimations from 3.9% growth
in April to 3.5% in June, given the slowing of the developing economies and
particularly that of China.
Thanks to its global footprint and its leadership in digital services, Publicis
Groupe intends to continue its policy of investing in the digital sector and in
high-growth economies.
The Groupe's robust financial situation means it has the means to successfully
implement its strategy, and this expansion will be achieved while upholding the
Groupe's strong profitability which will be enhanced over time.
Publicis Groupe confirms its guidance of organic growth that will be higher in
2013 than in 2012 (2.9%), and expects the latter could be in the region of 3.6%
(rather than the previous range of 3.2% to 3.6%), largely thanks to the recovery
in the USA and growth in the digital sector which now represents 36.9% of the
Groupe's total revenue.
****
This presentation contains forward-looking statements. The use of the words
"aim(s)," "expect(s)," "feel(s)," "will," "may," "believe(s)," "anticipate(s)"
and similar expressions in this presentation are intended to identify those
statements as forward-looking. Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ materially from
those projected. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this presentation. Other than as
required by applicable securities laws, Publicis Groupe undertakes no obligation
to publish revised forward-looking statements to reflect events or circumstances
after the date of this presentation or to reflect the occurrence of
unanticipated events. Publicis Groupe urges you to review and consider carefully
the various disclosures it has made concerning the factors that may affect its
business, including the disclosures made under the caption "Risk Factors" in the
2011 Registration Document filed with the French financial markets authority
(AMF).
About Publicis Groupe
Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is one of the
world's leading communications groups. We offer the full range of
services and skills: digital (DigitasLBi, Razorfish, Rosetta, VivaKi),
creative services (BBH, Leo Burnett, Publicis Worldwide, Saatchi &
Saatchi), public affairs, corporate communications and events (MSLGROUP),
media strategy, planning and buying (Starcom MediaVest Group and
ZenithOptimedia) and healthcare communications, with Publicis Healthcare
Communications Group (PHCG). Present in 108 countries, the Groupe employs
60,000 professionals.
www.publicisgroupe.com | Twitter:(at)PublicisGroupe | Facebook:
www.facebook.com/publicisgroupe
Viva la Difference !
Contacts
Publicis Groupe
Peggy Nahmany Corporate Communication + 33 (0)1 44 43 72 83
Martine Hue Investor Relations + 33 (0)1 44 43 65 00
Stéphanie Constand- Investor Relations + 33 (0)1 44 43 74 44
Atellian
Appendix
New Business
H1 2013
USD 2.8 billion (net)
Main accounts awarded
BBH/NEOGAMA
Pirelli (UK); Playstation (USA, Brazil); Haagen Dazs (Singapore); Basf (Brazil);
Philadelphia (UK); Clarks (UK); Bang and Olufsen (UK).
DigitasLBi
Lenovo (USA); Kao (USA); Whirlpool (USA); Dunkin' Donuts (USA); Sprint (USA);
Samsung (Brazil); MillerCoors (USA); Comcast (USA); Eureka Forbes (India); Dogs
Trust (UK); AXA UK (UK); - FOSS (Nordics); Johnson & Johnson (UK); Danone (UK);
LeipzigerMesse (Germany); HSBC (Australia); Roompot (Germany); ParcelHero.com
(UK); PWC (Germany); StadtwerkeBayreuth (Germany); PortalTech Reply (UK);
Navigate GmbH Systeme und Consulting (Germany); DSGV (Germany); Commonwealth
Bank (UK); Microsoft (UK): Langenscheidt GmbH & Co. KG (Germany); Lloyds TSB
(UK); E2X (UK); JKL (Nordics); Viking Line (Nordics); ASSTEL Lebensversicherung
AG (Germany); Ticket Online Software GmbH (Germany); SCA TENA (Nordics); Primera
Travel Group (Nordics); Adobe (USA); Moleskine (USA): P&G (USA); Spotify (USA);
Motorola (USA); Aetna (USA); Delta Air Lines (USA); NYSE Euronext (USA);
AstraZeneca (USA).
Fallon
Talenti (USA); (Giffgaff (UK).
Leo Burnett
AEON Superstores (Malaysia); Bols Spirits (Poland); Dubai International Film
Festival (UAE); Pfizer Consumer Health - Nexium OTC (USA); Peters Ice Cream
(Australia); Unipol Insurance (Italy); Castorama Home Improvement Stores
(Poland); PTG Energy (Thailand); Co-operative Social Media (United Kingdom);
Institute of Chartered Accountants of Sri Lanka (Sri Lanka); Home Center Home
Improvement Retailer (Colombia); BMW Mini (Japan); Twinings Tea (Malaysia); h.h.
gregg (USA); Petelinka Poultry (Russia); Media Markt Electronics Retailer
(Russia); Alouette Cheese (USA); RE/MAX Real Estate (USA); Victoria University
(Australia).
MSLGROUP
PayPal (USA, Canada); Emirates Air (PR) (USA); LaSalle Investment Management
(USA); Taitra (Taiwan).
PHCG
Astellas (USA); AbbVie (USA, Australia); Pfizer (USA, Global); Genentech/Roche
(USA, Global); Novartis (USA, Global).
Publicis Worldwide
Habib's (Brazil); CVC (Brazil); Dairy Queen (Canada); Nestle (Romania, USA);
Coca Cola (Spain); Vue Cinemas (UK); Qld Dept of Transport (Australia); Barmer
GEK (Germany); BNI (Indonesia); P&G (USA); NT Government (Australia); Subway
(India); BASF (Romania); Tourism Nothern Territory (Australia); Pfizer Centrum
(UAE); Gol Airlines (Brazil); Sanofi - Medley Division (Brazil); Siemens AG
(Germany); Stopanska Bank (Macedonia); Grupo Reforma (Mexico); Emirates Flight
Catering (UAE); Conga Foods (Australia); WM Ritchie (Australia); Brasil Brokers
(Brazil); Hypermarcas (Brazil); Total Corporate (France/Global); Nestle/Delissio
Food (Canada); CHILECTRA, ENDESA, ENERSIS (Chile); AS Roma (Italy); P&G/Bounty
(Mexico); Philips (Netherlands); AXA Equitable (USA); Oporto (Australia); Bene
(Germany); Commerzbank Wealth Management (Germany); Aon Consultants (Mexico);
Barcel (Mexico); Ferrero/Kinder Bueno (UAE); Nestlé/Maggi (UAE); Hilton Flagship
(USA/Global); Sleepy's (USA).
Saatchi & Saatchi
Salmoiraghi Vigano (Italy); Stroili (Italy); Godiva (Japan); St.George
(Australia); HSBC global premier wealth and sponsorship (global); Bold
International Ceramics (UAE/GCC); YBM Mastery E900 (Korea); PTT RM : Jiffy Brand
(Thailand); Thanachart Bank (Thailand); Kerry Foods/Richmond (UK); design3000.de
(Germany); Club Méd (Italy); Mill St. Brewery (Canada); Mahou 5 estrellas
(Spain).
StarcomMediaVest Group
American Honda Motors (USA); Beirut City Centre (UAE); Dubbizle (UAE); Europcar
(UK); Garuda Indonesia (Indonesia); GLA 360 Mall (UAE); Hartmann (Czech); Kuwait
Flour Mills (UAE); Mango (UAE); Meydan Group (UAE); Mondelez International
(USA); Namshi (UAE); Vivus (Poland); Ace Hardware (USA); Banca Unipol (Italy);
Finnair (Sweden); h.h ; gregg (USA); Unipol Insurance (Italy); Burger King
(Italy, Norway, Sweden, Denmark, Spain, UK, Canada, Portugal); Gourmet Foods
(Poland).
ZenithOptimedia
Kohl's (USA); KAYAK (Worldwide); Abu Dhabi Commercial Bank (UAE); Hainan
Airlines (China); Sharp Middle east (UAE); Ministry of Health (Singapore);
Unipex (UAE); Bold International (UAE); Haier Electronics (Kingdom of Saudi
Arabia- KSA); Haw Par (Singapore); Ministry of Defense (Singapore); Dao Games
(UAE); eOne (UK); Toyota (Italy); 20th FOX (Italy); Maybank (APAC Regional);
Maxxium (UK); Cruz Roja (Red Cross) (Spain); Prospect Park Networks (USA);
Bacardi (Panama); Changi Airport Group (CAG) (Singapore); Hasbro (Hungary);
Vzajemna (Slovenia); TE Data (Digital) (Egypt).
2013 Press Releases
01-02-2013. Publicis Groupe S.A. - Share purchases in LBi International
N.V.
01-10-2013 Liquidity Contract with CA Cheuvreux: Half-Year Financial Statement
01-15-2013 Successful outcome of Publicis Groupe S.A.'s recommended public
cash offer for LBi: offer now declared unconditional
01-29-2013 Publicis Groupe S.A. - Final results public offer for LBi
02-05-2013 Publicis Groupe to create the world's leading digital network -
DigitasLBi will pool the global market leadership and cutting-edge skill-sets of
top agencies Digitas and LBi
02-14-2013 2012 Annual Results
02-15-2013 Publicis Groupe announces the completion of a share buyback from
Dentsu of nearly 3.9 million shares
03-11-2013 Publicis Groupe acquires Convonix India's leading full service
digital marketing and consulting agency
04-12-2013 Publicis Groupe: 2012 Registration Document available
04-15-2013 Publicis Groupe: 2013 Q1 Revenue higher than Groupe objectives
04-17-2013 Publicis Groupe: New co-investment plan for 200 key executives
04-18-2013 Publicis Groupe acquires Neev, a leading software service provider
in India
04-19-2013 Tom Adamski named CEO of Rosetta
04-23-2013 During its Investor Day, Publicis Groupe announces new ad agency
model and ambitious five-year targets
04-25-2013 Elisabeth Ardaillon-Poirier to join Publicis Groupe as Senior
Vice-President
Anne-Gabrielle Heilbronner named General Secretary of Publicis Groupe
05-02-2013 190 Publicis key executives invest 44.7 m? in the "Groupe"
05-07-2013 Europe 2013: a continent adrift - A Publicis Groupe study on
emerging from recession in Europe
05-29-2013 Publicis Groupe: Annual General Shareholder's meeting
06-07-2013 Overview of the share buyback program authorized by shareholders
at their Combined General Shareholder's meeting of May 29, 2013
Glossary
Net financial debt (or net debt): equals the long and short term financial debt
plus associated derivatives fair value, less cash and cash equivalent
Average net debt: average of average monthly net debt.
Net new business: this figure is derived not from financial reporting but from
estimated media-marketing budgets based on annual business (net of losses) from
new and existing clients.
Operating margin: The operating margin is equal to the revenue after deduction
of personnel expenses, other operating expenses (excluding non current income
and expenses), depreciation and amortization (excluding intangible arising from
acquisitions).
Operating margin rate: operating margin/revenue.
Organic growth calculation
+----------------------------------------------+-------+ +---------------------+
| (EUR million) |H1 2013| | Currency impact |
| | | | (EUR million) |
| | | +------------+--------+
|2012 Revenue |3,084 | |GBP((2)) | (7)|
| | | +------------+--------+
|Currency impact |(53) | |USD((2)) | (19)|
| | | +------------+--------+
|2012 Revenue at 2013 exchange rate (a) |3,031 | |Others( (2))| (27)|
+----------------------------------------------+-------+ +------------+--------+
|2013 Revenue before impact of acquisitions |3,129 | |Total | (53)|
|((1)) (b) | | | | |
| | | +------------+--------+
|Revenue from acquisitions ((1)) |222 |
| | |
|2013 Revenue |3,351 |
| | |
|Organic Growth (b/a) |+3.2% |
| | |
+----------------------------------------------+-------+
1. Acquisitions (Webformance Saint Brieuc, Indigo, Flip, King Harvests, UBS,
Pixelpark, Longtuo, BBR, BBH, Neogama, CNC, Webformance Bordeaux, AR Media,
Arachnid, Resultrix, Webformance Spain, Diplomatic Cover, Grita, Istrat,
Outside Line, Bromley, Monterosa, Rokkan, LBi, Blue Parrot, Market Gate,
Taterka, Convonix) net of disposals.
(2) Average exchange rate H1 2013: 1 USD = 0,761 EUR
1 GBP = 1,175 EUR
Consolidated financial statements
June 30, 2013 (unaudited)
Consolidated income statement
June 30(th), June 30(th), December 31(th), 2012
(in millions of euros) 2013 2012 12 months (*)
6 months 6 months (*)
Revenue 3,351 3,084 6,610
Personnel expenses (2,168) (1,979) (4,078)
Other operating (660) 4(638) 1,(1,344)
expenses
Operating margin
before depreciation 523 467 1,188
and amortization
Depreciation and
amortization expense
(excluding intangibles (61) (53) (126)
arising from
acquisitions)
Operating margin 462 414 1,062
Amortization of
intangibles arising (23) (22) (45)
from acquisitions
Impairment loss (1) (5) (11)
Non-current income and 13 4 39
expenses
Operating income 451 391 1,045
Financial expense (23) (44) (71)
Financial income 10 30 41
Cost of net financial (13) (14) (30)
debt
Other financial income 8 3 (2)
and expenses
Pre-tax income of 446 380 1,013
consolidated companies
Income taxes (125) (106) (279)
Net income of 321 274 734
consolidated companies
Share of profit of 2 7 25
associates
Net income 323 281 759
Of which:
- Net income
attributable to non- 9 8 27
controlling interests
(minority interests)
- Net income
attributable to equity 314 273 732
holders of the parent
company (Group share)
-------------------------------------------------------------------------------
Per share data (in euros) - Net income attributable to equity holders of the
parent company
Number of shares 213,478,263 193,000,835 201,032,235
Earnings per share 1,47 1,41 3,64
Number of diluted shares 221,704,582 226,598,082 224,143,700
Diluted earnings per 1,42 1,27 3,34
share
--------------------------------------------------------------------------------
(*) figures have been restated as explained in Note 1 " Accounting policies" in
accordance with IAS 19 amended
Consolidated statement of comprehensive income
(in millions of December
euros) June 30(th), 2013 June 30(th), 2012(*) 31(th) ,
2012(*)
--------------------------------------------------------------------------------
Net income for the 323 281 759
period (a)
Items that will not
be reclassified to
profit or loss
- Actuarial gains
and losses on 29 (41) (30)
defined benefit
plans
- Deferred taxes on
other comprehensive
income that will not (9) 10 6
be reclassified to
profit or loss
Items that may be
reclassified to
profit or loss
- Revaluation of
available-for-sale 11 2 4
investments
- Consolidation
translation (67) 66 (61)
adjustments
- Deferred taxes on
other comprehensive - - -
income
Total Other
comprehensive income (36) 37 (81)
(b)
Total comprehensive
income for the 287 318 678
period (a) + (b)
Of which:
- Attributable to
non-controlling 6 8 24
interests (minority
interests)
- Attributable to
equity holders of 281 310 654
the parent company
(Group share)
--------------------------------------------------------------------------------
(*) figures have been restated as explained in Note 1 " Accounting policies" in
accordance with IAS 19 amended
Consolidated balance sheet
(in millions of euros) June 30(th), 2013 December 31(th), 2012(*)
--------------------------------------------------------------------------------
Assets
Goodwill, net 6,081 5,667
Intangible assets, net 972 982
Property, plant and equipment, net 509 506
Deferred tax assets 121 97
Investments in associates 20 23
Other financial assets 174 242
Non-current assets 7,877 7,517
Inventory and work in progress
396 342
Accounts receivable 7,046 6,841
Other receivables and current assets 584 591
Cash and cash equivalents 750 1,314
Current assets 8,776 9,088
Total assets 16,653 16,605
June 30(th), 2013 December 31(th), 2012(*)
--------------------------------------------------------------------------------
Liabilities and equity
Share capital 84 84
Additional paid-in capital and 4,468 4,530
retained earnings, Group share
Equity attributable to holders of the
parent company (Group share) 4,552 4,614
Non-controlling interests (minority 48 44
interests)
Total equity 4,600 4,658
Long-term borrowings 530 730
Deferred tax liabilities 240 238
Long-term provisions 409 464
Non-current liabilities 1,179 1,432
Trade payables 8,013 8,249
Short-term borrowings 862 379
Income taxes payable 52 65
Short-term provisions 139 166
Other creditors and current 1,808 1,656
liabilities
Current liabilities 10,874 10,515
Total liabilities and equity 16,653 16,605
(*) figures have been restated as explained in Note 1 " Accounting policies" in
accordance with IAS 19 amended
Consolidated cash flow statement
June 2013 June 2012(*) December 2012(*)
(in millions of euros) 6 Months 6 Months 12 Months
--------------------------------------------------------------------------------
Cash flow from operating activities
Net income 323 281 759
Neutralization of non-cash income and
expenses:
Income taxes 125 106 279
Cost of net financial debt 13 14 30
Capital (gains) losses on disposals (12) (3) (38)
(before tax)
Depreciation, amortization and
impairment on property, equipment and 85 80 182
intangible assets
Non-cash expenses on stock options and 18 12 26
similar items
Other non-cash income and expenses - (4) (1)
Share of profit of associates (2) (7) (25)
Dividends received from associates 2 4 8
Taxes paid (159) (151) (306)
Interest paid (18) (32) (61)
Interest received 22 12 24
Change in working capital requirements (513) (373) 155
Net cash provided by (used in) operating (116) (61) 1 032
activities (I)
Cash flows from investing activities
Purchases of property, equipment and (53) (42) (123)
intangible assets
Proceeds from sale of property, 2 2 3
equipment and intangible assets
Purchases of investments and other (15) (19) (120)
financial assets, net
Acquisitions of subsidiaries (386) (99) (369)
Disposals of subsidiaries
Net cash flows provided by (used in) (452) (158) (609)
investing activities (II)
Cash flows from financing activities
Dividends paid to holders of the parent - - (119)
company
Dividends paid to non-controlling (14) (23) (31)
interests
Cash received on new borrowings 138 6 16
Reimbursement of borrowings (91) (544) (546)
Net purchases of non controlling (58) (27) (30)
interests
Net (purchases)/sales of treasury shares (169) (596) (566)
and equity warrants
Net cash flows provided by (used in) (194) (1,184) (1,276)
financing activities (III)
Impact of exchange rate fluctuations (38) 8 (7)
(IV)
Net change in consolidated cash flows (I (800) (1,395) (860)
+ II + III + IV)
--------------------------------------------------------------------------------
Cash and cash equivalents on January, 1 1 314 2 174 2 174
Bank overdrafts on January, 1 (28) (28) (28)
Net cash and cash equivalents at 1 286 2 146 2 146
beginning of period (V)
Cash and cash equivalents at closing 750 772 1 314
date
Bank overdrafts at closing date (264) (21) (28)
Net cash and cash equivalents at closing 486 751 1 286
date (VI)
Net change in cash and cash equivalents (800) (1,395) (860)
(VI - V)
(1) Breakdown of change in working
capital requirements:
Change in inventory and work in progress 8 (34) 41
Change in accounts receivable and other (107) 156 (426)
receivables
Change in accounts payable, other (414) (495) 540
payables and provisions
Change in working capital requirements (513) (373) 155
(*) figures have been restated as explained in Note 1 " Accounting policies" in
accordance with IAS 19 amended
Consolidated statement of changes in equity
Reserves Equity Non-
Number of Additional and Fair attributable controlling Total
outstanding (in millions of Share paid-in earnings Translation value to the interests equity
shares euros) capital capital brought reserve reserve holders of (minority (*)
forward the parent interests)
(*) company (*)
199,203,650 January 1, 2013 84 2,851 1,642 (97) 134 4,614 44 4,658
Net income 314 314 9 323
Other
comprehensive 20 (64) 11 (33) (3) (36)
income:
-----------------------------------------------------------------------------------------------------------
Total income
and expenses 334 (64) 11 281 6 287
for the period
-----------------------------------------------------------------------------------------------------------
Publicis Groupe
5,405 SA capital
increase
Dividends (178) (178) (14) (192)
Share-based 18 18 18
compensation
Additional
interest on (3) (3) (3)
Orane
Effect of
acquisitions
and commitments
to buy out non- (11) (11) 12 1
controlling
interests
(minority
interests)
Purchases/sales
(1,212,812) of treasury (169) (169) (169)
shares
197,996,243 June 30, 2013 84 2,851 1,633 (161) 145 4,552 48 4,600
(*) figures have been restated as explained in Note 1 " Accounting policies" in
accordance with IAS 19 amended
Publicisgroupe.com 19/22
Reserves Equity Non-
Number of Additional and Fair attributable controlling Total
outstanding (in millions of Share paid-in earnings Translation value to the interests Equity
shares euros) capital capital brought reserve reserve holders of (minority (*)
forward the parent interests)
(*) company (*)
185,996,063 January 1, 2012 77 2,479 1,253 (39) 130 3,900 33 3 ,933
(*)
Net income 273 273 8 281
Other
comprehensive (31) 66 2 37 37
income
---------------------------------------------------------------------------------------------------------------
Total income and
expenses for the 242 66 2 310 8 318
period
---------------------------------------------------------------------------------------------------------------
(10,759,813) Publicis Groupe SA (4) (381) (385) (385)
capital increase
Dividends (119) (119) (23) (142)
Share-based 14 14 14
compensation ((1))
Additional (4) (4) (4)
interest on Orane
Effect of
acquisitions and
commitments to buy
out non- 18 18 21 39
controlling
interests
(minority
interests)
1,462,108 Oceane 2014 1 39 1 41 41
conversion
(4,643,758) Purchases/sales of (212) (212) (212)
treasury shares
172,054,600 June 30, 2012 (*) 74 2 ,137 1,193 27 132 3,563 39 3,602
(*) figures have been restated as explained in Note 1 " Accounting policies" in
accordance with IAS 19 amended
1. The actuarial gains and losses on defined benefit plans as well as share-
based compensation take into account the associated taxes deferred.
Publicisgroupe.com 20/22
Earnings per share
Earnings per share and diluted earnings per share
(in millions of euros, except for share data) 30 june 2013 30 june 2012*
--------------------------------------------------------------------------------
Net income used for the calculation of earnings
per share
Group net income a 314 273
Impact of dilutive instruments:
- Savings in financial expenses related to
the conversion of debt instruments, net of 1 14
tax( (1))
---------------------------
Group net income - diluted b 315 287
Number of shares used to calculate earnings per
share
Average number of shares that make up the share 210,011,153 186,024,782
capital
Treasury shares to be deducted (average for the (12,154,180) (10,207,366)
year)
Shares to be issued to redeem the Orane 15,621,290 17,183,419
---------------------------
Average number of shares used for the calculation c 213,478,263 193,000,835
Impact of dilutive instruments:( (2))
- Free shares and dilutive stock options( ) 3,284,649 4,508,286
- ( )Warrants( ) 2,317,132 1,228,951
- Shares resulting from the conversion of 2,624,538 27,860,010
convertible bonds( (1))
---------------------------
Number of diluted shares d 221,704,582 226,598,082
--------------------------------------------------------------------------------
(in euros)
Earnings per share a/c 1.47 1.41
Diluted earnings per share b/d 1.42 1.27
(*) figures have been restated as explained in Note 1 " Accounting policies" in
accordance with IAS 19 amended
1. The Oceanes 2018 and 2014 are factored into the calculation of diluted EPS
for the first half 2012. For the first half 2013, Oceane 2018 solely is
taken into account since it is the only one still outstanding.
2. Only stock options and warrants with a dilutive impact, i.e., whose strike
price is lower than the average strike price, are included in the
calculation.
Headline earnings per share (basic and diluted)
(in millions of euros, except for share data) 30 june 2013 30 june 2012
--------------------------------------------------------------------------------
Net income used to calculate headline ((1))
earnings per share
Group net income 314 273
Items excluded:
- Amortization of intangibles from acquisitions, 14 14
net of tax
- Impairment, net of tax 1 3
- Revaluation of earn-out payments (2) (7)
- Profit from deconsolidation of entities (12) -
--------------------------
Headline group net income e 315 283
Impact of dilutive instruments:
- Savings in financial expenses linked to the 1 14
conversion of debt instruments, net of tax
--------------------------
Headline group n
Unternehmensinformation / Kurzprofil:
Datum: 18.07.2013 - 07:30 Uhr
Sprache: Deutsch
News-ID 279498
Anzahl Zeichen: 65602
contact information:
Town:
Paris
Kategorie:
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